After China scrapped its zero-COVID policy at the end of 2022, retail sales declined in this country in both volume and real value terms in 2023. As consumers’ lives returned to normal, this resulted in a shift from cooking at home to eating out at foodservice establishments, schools and government cafeterias once again, negatively impacting the overall regional performance in 2023. However, positive growth is expected in both volume and real value terms in Asia Pacific over the forecast period.
This report comes in PPT.
As elsewhere in the region, many products within cooking ingredients and meals have been experiencing price increases in Japan in 2023, due to inflation and rising production costs. In a number of categories this was contributing to declines in retail volume sales in Japan.
Health was a key driver behind new product launches in China in 2023. For example, some players are blending olive oil with other edible oils to create a healthier image. Various niche types of healthier edible oils are also emerging, including avocado oil (rich in vitamins), walnut oil (good for brain development), and Sacha Inchi oil (contains nervonic acid for boosting brain activity and preventing neural ageing).
While modern grocery retailers continue to lead sales in China, Japan and South Korea, small local grocers remain the dominant channel in India. E-commerce made strong share gains in most countries when the pandemic first hit the region in 2020, and has since continued to grow in much of the region. South Korea (19%) and China (16%) have the biggest online sales shares.
Clean label is expected to maintain its growth momentum in China over the forecast period. Not only has Kraft Heinz committed to making its entire Master brand line free from preservatives, but other manufacturers, such as Haday and Lee Kum Kee, are also increasing the proportion of their products that do not contain additives.
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